The prices of bread are expected to increase by 50% or more across different sizes in April due to some pressing challenges facing the bakers.
This was disclosed by the Premium Bread-Makers Association of Nigeria on Monday.
According to the bakers, the harsh business environment, which has forced several bakers to shut down operations, will automatically trigger the cost of the commodity next month. They described the present situation as worrisome and imminently crippling for operators in the bread-making businesses segment.
Read: Petrol, durum wheat, ‘tokunbo vehicles’ top Nigerian import list in 2021
Why the cost will rise in April
Emmanuel Onuorah, President of the group, said, “Companies are shutting down their businesses as a result of the increase in the price of diesel. Some of my members shut down (their business premises) again this week. So many other companies are closing down.
“There will be a scarcity of wheat next month and the millers will raise their prices to N30,000 or N40,000 and that will affect the cost of bread across board by 50% or more. As we speak, operators in the sachet water business segment are on strike. They’ll likely increase the price of sachet water to N25 or N30. We don’t even know where this thing is tending towards. Bigger companies are closing because of operating costs. Businesses are going under.
“Hospitals now have to ration diesel. Energy is the key. We understand that in two weeks time, there will be a scarcity of wheat and the millers will raise their prices to N30,000 or N40,000. People are bending backwards to see what they can do. Things such as reducing the sizes of their bread or cutting down on the weight. This is so that we can just maintain what are we doing.”
Read: Is Nigeria’s Bread price hike a result of price-fixing?
What you should know
- In February, Nairametrics had reported that there were indications that prices of bread may rise significantly in the coming days due to a combination of factors, including the escalating cost of flour and other baking materials, high energy cost and multiple taxations.
- A market survey conducted by our correspondent in Lagos and Ogun states revealed that the cost of baking flour had risen in most major markets. For instance, a 50-kilogramme of flour, the major ingredient for making bread and other pastries, which cost N6,200 in December, has increased to N6,600 on average.
- Master bakers in both states told our correspondent that the 5.5 per cent increase in price since January had drastically reduced their profit margin and would likely lead to a rise in the price of bread, cake and other pastries.
- The Chairman, Association of Master Bakers and Caterers of Nigeria, Ojodu Zone, Mr. Adediran Bakare, said some of the major flour mills announced to their distributors in December the upward review of the prices of their products.
- He explained that most bakers were caught unawares by the price increment as they did not make adequate preparation for it.
